Should I get a better job to raise capital?

Question

Krysty Underwood · Answer

I know I'm jumping in late, but just wanted to make you aware of something I just discovered today. Two years ago on a teacher's salary my family and I were living in poverty, but we had free healthcare and qualified for food stamps. We didn't want handouts anymore and began ways to raise our capital. I was already disillusioned by the public school anyway, as I wasn't helping kids succeed their own personal best as I was teaching them to make neat little circles in ABCD boxes on stated-mandated tests, so I quit teaching and began homeschooling my daughter (the way a kid naturally learns) and started a transcription business. My husband took a job working 60+ hours a week, and we began selling on eBay, hiring subcontractors for the transcription business, and really growing our income. When we increased our income by about $100, we lost the $300 in food stamps that was helping us get by until we were able to fully support ourselves. At the same time, my sister moved in with us to go to college. She has a learning disability and would not be able to work and go to school full time or she would be overwhelmed. So by living with us, we were trying to help her reduce her expenses so she could attend college on her grants and scholarships alone. We were told by DHS that she doesn't qualify for government assistance because she was going to college but not working. We asked them what she needed to do to qualify. Their exact words were, "drop out of college or get pregnant or be addicted to drugs". Needless to say, none of those were good options for her long-term future.

So we continued working and saving and working more. This year, we no longer qualify for free Obamacare, which we were huge fans of back when we were ignorant about money. Now we are expected to pay $500 a month for it or pay a fine. And that's the cheapest one. Its cheaper through my husband's work, but just barely.

So we successfully doubled our net income in two years. However because we are in a higher tax bracket literally every penny of that money is going to taxes and increased medical costs. The government does not want to use these programs to get you out of poverty, but try to convince you its the only option for you.

They are lying. If I had these last two years to do over again, I would have done my best to reduce my expenses instead of increase my income right now. And I would have taken every cent I saved and invested it in ways the government can't touch. I could have spent more time looking for ways to increase my wealth, not my income, so that when I fully moved out of poverty, it would be in a more sustainable way where my husband and I didn't have to work 60-70 hours a week on odd schedules. My advice comes straight from Rich Dad Poor Dad. Build your wealth, not your income. Income will follow.

Danger Brown · Answer

I don't really agree with the get a 2nd (or better) job plan. I haven't had a job in 12 years and wouldn't ever seek one unless it was an apprenticeship of sorts.

I understand keeping a job if you love it, or feel safe that way... or until the real estate business replaces it. BUT, I say this:

If you want to be a real estate investor, BE a real estate investor. Work for your paycheck while you have to, but if you need extra money, take a 2nd job working for a real estate investor. Bird dog, drive for dollars, help them in their business so you can learn and make extra money along the way.

Or just do it for yourself. Start wholesaling in your spare time. Use wholesaling profits to make your own investments or scale up.
Or, if you are job minded but want to learn real estate investing, work towards becoming a commercial real estate broker or other player in the industry.

Randi Del Gatto · Answer

In my opinion, the democrats in general want you to remain ignorant about money and finances. That is how they can "buy" your vote. Free is not free - ever! Someone is paying for it and it is not the rich like they want you to believe. It is the middle class.

Our current system rewards doing the wrong thing and punishes doing the right thing. That is why so many people have dropped out of the workforce completely. Why bother? It is a sad state of affairs.

Danger Brown · Answer

You can also learn some stuff and make some extra money by managing 1 or more properties for other investors. There are LOTS of landlords who don't want to deal with their own properties.

Allen Clark · Answer

I think there is no short cut here. In order to become an investor you need to have capital to invest. In order to have capital you need to make money and then save. This takes time. If you're making $10/hr then you may need to invest in yourself. Education is a good path to higher paying work. At your current wage, I think it would be very hard to save and have enough to invest meaningfully.

Franklin Romine · Answer

My most valuable asset when I first started investing was my w2.

Frank

Evan R. · Answer

Nathan you need to decide what kind of work you do while starting to invest.  It will probably take your 5-10 years of investing before considering living off of your real estate income.  Have you thought about going into sales at the dealership?  That would be a way to boost your income.  If you find another job, you can buy a property a few months after you are settled in at your new employer.

The more money you make the faster you can save and more financially independent you will become.

I want to make more moneyso I've started to send out my resume.  =)

Matthew Kreitzer · Answer

This is, unfortunately, a very personal decision that you have to make. You have to ask yourself some certain things; What are my current opportunities for advancement? How long would it take to advance in my current organization? Is that growth enough to fund my desired life style? Am I willing to risk unemployment to raise my lot?

Should I get a better job to raise capital?

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